On October 1, Little Bobby Company’s equity is as follows.

On October 1, Little Bobby declares and distributes a 10% share dividend when the market price is €15 per share.
Instructions

a. Determine the par value per share (1) before the share dividend and (2) after the share dividend.

b. Indicate the balances in the three equity accounts after the share dividend shares have been distributed.

Transcribed Image Text:

Share capital-ordinary, 5 par value 400,000 Share premium-ordinary Retained earnings Total equity 25,000 155,000 580,000